Question
Two segments (Mountain Bike and Road Bike) showed the following datafor the most recent year: Mountain bike Road bike Contribution to indirect expenses $ 840,000
Two segments (Mountain Bike and Road Bike) showed the following datafor the most recent year:
| Mountain bike | Road bike | |
| Contribution to indirect expenses | $ 840,000 | $ 504,000 |
| Assets directly used by and identified with the segment | 2,520,000 | 2,184,000 |
| Sales | 3,360,000 | 6,720,000 |
Required
- Calculate return on investment for each segment in the most direct manner.
- Calculate return on investment using the margin and turnover component.
Please, I want to answer in roses and not in handwriting
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel
3rd Edition
0470377852, 978-0470377857
